Payment made in advance for goods that are not yet produced

Q: I have certain customers who pay via EFT and prefer to make monthly payments in advance. Since they are purchasing milk and eggs from me, often I have not yet received the milk and it has not even been produced yet.

1. What is the correct way for me to conduct the sale with these clients?

2. One of the customers mentioned that they don’t mind me using the money before they have purchased goods to the full value. Is it permissible for me to use it?

3. I have a customer that pays later. After purchasing the products, he sometimes has a complaint that it’s not as fresh as he is used to. If I wish to give him a discount, what would be the best way to do it?

A:

1. You should inform your clients that you will only sell the eggs, milk, etc. to them later on at the time they place an order. Prior to that, you will keep their money for them.

2. It is permissible for you to use their money which they deposited in your account. However, if they do not wish to purchase the eggs and milk from you and claim their money from you, you should return their money to them.

3. The sale was valid. Since it was a valid sale, he is not eligible to any reduction in the price. However, if you wish to give him something on the basis of maintaining a healthy clientele relationship, then you may do so.

And Allah Ta'ala (الله تعالى) knows best.

(ويجوز للمشتري أن يزيد للبائع في الثمن ويجوز للبائع أن يزيد للمشتري في المبيع ويجوز أن يحط من الثمن ويتعلق الاستحقاق بجميع ذلك) (الهداية 3/75)

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)